USANA sales up, profits down

by louabbott on November 2, 2009

This is from The Salt Lake Tribune (Updated: 10/28/2009 03:58:50 PM MDT) on Usana’s latest numbers:

USANA Health Sciences Inc., the direct seller of nutritional supplement products and personal care products, reports its 3-quarter sales had risen, but its net was down.

Sales rose to $110.8 million, compared to $107.2 million in the third quarter of the previous year — an increase of 3.3 percent, the company said.

The increase was driven primarily by an 8.2 percent rise in the number of independent distributors. Usana sells its products directly to the distributors who also earn commissions for the sales to others they bring into the company.

Net earnings for the third quarter were $7.9 million, or 51 cents a share, compared to $8.1 million, or 50 cents a share, in the same quarter last year. The decrease in earnings was due to higher incentives to its distributors, the company said. The growth in earnings per share in third quarter of 2009 was due to a lower number of shares outstanding.

The West Valley City company also said sales in North America decreased by 6.7 percent, primarily due to the falling dollar. Sales in its Asia Pacific region increased by 18.5 percent.

Some thought that the Binary comp plan was a gimmick that would not survive.  Usana has proven that thought wrong. They are now the oldest, most successful MLM with a Binary compensation plan – in business since 1992.

In fact, it now seems that most new companies are using hybrid comp plans that combine a Binary with some kind of matching bonuses by line of sponsorship.

See more on Usana here.

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